** Shares of Australia's Novonix rise as much as 15.7% to A$0.85, their highest since May 22

** Battery cell manufacturer signs two-year joint collaboration agreement with UK-based cobalt and nickel salt producer ICoNiChem Widnes

** Says project, with a total budget of C$515,686 ($377,625.95) between Novonix and ICoNiChem, will focus on development of nickel-based cathode active materials for battery cells

** Funding for agreement received from National Research Council of Canada Industrial Research Assistance Program and Innovate UK - Novonix

** Says cos have been selected for funding under 2024 Canada-UK critical minerals call for proposals focusing on advancing projects in renewable energy, electric vehicles, and electronics

** About 5 mln shares change hands by 0330 GMT, 2.8 times the 30-day avg

** Novonix stock up 10.9% YTD

($1 = 1.3656 Canadian dollars)

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com;))